This is number 3 of a 4-part series on the franchise Success Profile. In this article, we will look at three concepts that fit this profile. If you recall the profile: low entry costs, high gross margin, low overhead, few moving parts, and diversified within a market segment.
Mobile Franchises. These come in all kinds and sizes. Collaborative Franchise Systems has developed several mobile franchise concepts in Italian Ice, Chocolate Deserts, Popcorn, Wine, Roasted Corn, etc. Most food trucks or trailers pulled by a truck are niche food products. Niche means they work well at events, sports venues, parties, schools, catering, and such. They have a very high gross margin. Food that is easy to make and serve, and often is an “impulse buy.” For example, a $7.00 retail product might have a cost of goods of $1.00 to $2.00. Events might sell for $500 to $5,000 a day depending on location and concept.
Home Services. There is a wide range of these services such as lawn care, sidewalk cleaning, home security, home repair, home inspection, etc. Your goal here is “repeat customers.” Create a list of customers who want your services on some frequency and once this is established diversify into other services for your customers. Each business unit should operate with one or two employees max. Often your job will be customer acquisition, not actually doing the service. I know of businesses that earn multiple six figures just doing odd jobs that others don’t want to do.
Professional Services. Some of these businesses require a certification or license to perform and some don’t. While home services are typically Business-To-Consumer (B2C) professional services are often Business to Business (B2). For example, coaching of all kinds, mobile health and fitness instructors, a wide range of sales-oriented businesses, business networking, pest control, commercial cleaning, real estate, insurance, tax preparation, and even franchise broker, consultant, and advisor roles.
I recommend you get with a Certified Franchise Advisor (CFA) and discuss this wide range of options, costs, and wealth strategies. In the last article of this series, we will discuss a Wealth Building Strategy using Franchising.
Robert A. Needham, JD, Ph.D. has over 30 years of experience in business and franchise development. He is a published author, innovator, and strategic advisor to the franchise industry.